Goldman Sachs losing traction in IPOs?

June 23, 2010 | By Jim Kim

I've said it before: this is a great time to be Goldman Sachs (NYSE: GS) customer. The firm has been eating humble pie, and it has been directed to go all out to keep clients in the truck. If you haven't gotten a sushi lunch by now, you might have to question your status as a customer.

The debate about this charm offensive has been raging, and it's way too early to say the firm has lost a meaningful amount of business. Reuters takes a look at the issues, and notes that the firm may be experiencing some slippage in the IPO market (IPO news). It lost out on the GM IPO. It has apparently lost out on the Booz Allen Hamilton IPO as well. The average size of a Goldman Sachs IPO has shrunk. And it's doing much smaller deals than it used to.

All of that may reflect the market, but it may also reflect the firm's tainted reputation. I liken the bank's situation to Tiger Woods' circumstance. The veil of supremacy has been pierced, and people are much less intimidated. Take this quote from Michael Vogelzang, the chief investment officer at Boston Advisors: "Goldman is the smartest guy out there, but it doesn't seem to be bound by any ethical guidelines, at least that we can see. The individuals there are great. We love working with our contacts. But it is very frustrating."

For more:
- here's the article